Financial Moves in Your Twenties in Nigeria Your twenties are a great time to in your life. Here are financial moves in your twenties in Nigeria that
Financial Moves in Your Twenties in Nigeria
Your twenties are a great time to in your life. Here are financial moves in your twenties in Nigeria that will make your rich in future. Your twenties generally mark the entry into your earning years.
They lay the foundation for the rest of your financial life.
If your parents did not open a savings account for you from childhood, then it is a wise thing to start of well in your twenties because it will make it easier for you to manage your earnings and accomplish your financial goals.
You will be spared the hassles of playing catch up and be able to start a family, pursue a career, buy a house or start your own business.
These financial moves in your twenties in Nigeria prepare you for the future while you enjoy your twenties.
They are easy and will not change your lifestyle drastically.
Start Saving for Investments
Open a special account with your bank and place a standing instruction to start deducting 5% of your monthly salary as soon as you are paid.
The beauty of this is that you won’t even feel like you are saving and standing orders help you to save automatically and consistently and discourages withdrawing from the account because it comes with a penalty.
Anyhow you choose to look at it, you win.
Start Saving for Retirement
As soon as you start your first job, one of the financial moves in your twenties in Nigeria is to start putting money away for retirement.
Your retirement money will begin working for you and you will eventually get to the point where it is earning more in interest than you are contributing each month.
When this happens your savings will really start to grow. The sooner you start contributing, the sooner you will be able to do it.
You do not want to worry about paying catch up on your retirement in later years. Start contributing to your RSA as soon as you are eligible.
You should contribute enough to take full advantage of your employer’s match program. You can gradually work up to contributing fifteen percent of your income as you get raises and you pay off your debt.
Get Out of Debt
As a young Nigerian graduate, it will be strange to hear that you are deeply indebted. It is our American counterparts that graduate and start life with a huge debt load.
However, if you are in debt for whatever reason, working to get out of debt is a smart financial move in your twenties in Nigeria.
Set up an automatic debt repayment system using a standing order and work at getting out of debt today.
In your twenties, you are a better position to do lay a firm foundation for a great financial future for yourself.
Whatever you want to do with your life, you should not be held back by your debt.
Let Budgeting Be a Habit
Budgeting restricts but is another of the financial moves in your twenties in Nigeria. It makes you disciplined and to be able to handle money rather than being controlled by the desire to spend on whatever you like.
The fact is that even after managing your money for several years, you will fall off every once in a while to into bad spending habits again but it should not be a lifestyle.
The earlier you get used to a life of budgeting, saving money and investing the savings, the better off you will be.
Invest time in finding a budgeting system that works for you.
Remember that writing down your expenses is not budgeting. Budgeting is done before you spend.
When you get married, you will need to teach your spouse how to budget if they do not know. These are things you should have been discussing while courting.
This will take some serious work as you adjust to living together s a couple. However, it is the key to vital to having a financially successful future.
Set Up a Financial Plan
A financial plan is a map that guides you to a wealthy destination. Long-term financial plans will give you a strong purpose as you manage your money. It will help you set definite, achievable goals for your career, your retirement and building wealth.
It will empower you and help you chase your dreams. When you have children, it will also help you plan to pay their school fees and other expenses.
Don’t think it is premature to have a written financial plan when you are in your twenties while you have not taken any life steps like getting married or starting a family. Know that it will still help you with your general financial life.
Also, it is important to know that you can change your financial plan as you grow older and your life changes. You can add in payment of school fees for your kids etc.
The best time to break free of the bad financials habits is now. Don’t let bad money habits ruin your prosperous future